Digital Disruption - it’s time to embrace change
Technological innovation is driving digital transformation across industries globally. While delivering enormous advantages, it can also swiftly change market dynamics and significantly upset the stability of established industries.
This puts increasing pressure on existing businesses, with estimates up to 40 per cent of companies today are at risk of either disappearing or being less relevant in fewer than ten years from now.
This acceleration of digital disruption has recently been described as being like a vortex; relentlessly pulling everything to its centre.
The vortex metaphor suggests the digitisation of businesses and government services is inevitable, and as the forces of change become too strong to ignore, businesses that fail to adapt will drive out the market.
The message is clear. Organisations that do not drive their own digital business transformation will be left behind.
However, those that embrace digitisation will be pulled toward a “digital centre” in which business models and product offerings are digitised delivering key advantages
- Reduced costs
- Increased productivity
- Improved compliance
- Generation of new revenue streams.
Surprisingly only 25% of businesses describe their response to digital disruption as ‘proactive’, with many taking a passive ‘wait and see’ approach.
The Financial Broking Industry is one of the key service industries that will experience the most digital disruption between now and 2020.
According to ASIC Chairman Greg Medcraft, technology is integral to improving the effectiveness of disclosure in the financial services industry.
1 New research released by the Global Center for Digital Business Transformation (DBT Center) “We want investors to have trust and confidence in our financial system and part of that is for ASIC to explore new ways for investors to get to grips with their investments,” he said.
“We encourage industry to harness the opportunities of digitisation. More and more, people are accessing financial products and making decisions using mobile devices.
“More work needs to be done on short disclosure. Investors tend to turn off when faced with wordy disclosure documents. If they need more detail, investors can access further layers of information from product providers online.”
He added that product providers now have the opportunity to present information in interactive or video form and offer online tools for investors to assess their understanding of a product.
HOW TO PREPARE FOR DIGITAL CHANGE
To prepare for digital change, a business should ask two key questions:
- How do we increase the agility of our organisation – people, processes, technology – to ensure we can capitalise on new disruptions?
- What capabilities do we need to digitally transform our business?
Article submitted by Your Digital File, the most secure cloud service for the storage, sharing, updating and legal signing of digital documents.
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